Southern Pacific Resource Corp.
TSX VENTURE : STP

Southern Pacific Resource Corp.

December 11, 2006 17:32 ET

Southern Pacific Corporate Update

CALGARY, ALBERTA--(CCNMatthews - Dec. 11, 2006) - Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation") (TSX VENTURE:STP) is pleased to announce that it has received the TSX-V final bulletin approving the acquisition of 80% of Bounty Developments Ltd.'s ("Bounty") interest in its Leismer South Oil Sands Assets as originally announced on September 10, 2006 (the "Acquisition"). Bounty and Southern Pacific are now joint venture partners for the development of the Leismer South Oil Sands Assets, which are comprised of 25 contiguous sections in Townships 75-76, Rge. 10 W4M.

The bulletin also approves the two previously announced private placements. The total of the two placements generated gross proceeds for the Corporation of $10,000,000. These proceeds were used for payment of the purchase price for the Acquisition, and will be used for the completion of evaluation and development drilling, of the seismic, and for general working capital purposes.

OPERATIONS UPDATE

The Corporation is also pleased to announce their winter drilling program. The initial five well program will be drilled as soon as governmental approval is received, all services, including the procurement of a drilling rig have been contracted. It is anticipated that this initial portion of the drilling program will begin in December and will be completed by early January. In conjunction with this initial drilling a seismic program will be shot, which is scheduled to begin the first week of January.

Following the evaluation of the results of the five wells and the seismic interpretation, the Corporation has planned a second round of evaluation drilling to begin in February. This second round of drilling will include up to 15 additional wells. This program will enable the Corporation to establish its further delineation and development initiatives.


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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